There is more to Asia than many global investors outside the region realise. As a result, global allocations lag the region’s modernisation, and will be playing catch up with its structural potential even if risks and market valuations cannot be ignored.
Can Asia’s economic tiger save the cycle, or will its soaring debt bring the world’s economy down? Keen to avoid a financial meltdown, China’s authorities have brought an end to credit growth, reducing the risk of a crisis but creating a drag on global growth. And if there were another global crisis, China would not intervene again to cushion the blow.